Healthcare professionals expect more from their employers, and hospitals need to offer comprehensive benefits to attract and retain top talent. But building a strong benefits program can be costly. How can hospital HR leaders expand employee offerings while staying within tight budgets? 

We interviewed Kirk Watkins, President of FairShare Insurance, to understand why hospitals are reinsuring employee-paid voluntary benefits packages to maximize their value. FairShare works with employers to design, implement, and manage voluntary benefits programs at no additional cost. Watkins goes over the 4 top benefits of reinsurance from lower premiums and better coverage to reinvesting surplus revenue into employee retention initiatives. 

Connect with FairShare and other healthcare solutions partners through VHHA Solutions. We partner with companies in patient safety, data analytics, and finance to support and bring innovative solutions to healthcare and hospital systems across Virginia. Email our team to see how we can help. 

The Key Takeaways: 

• Reinsurance helps insurance companies mitigate risks, allowing them to pass on financial benefits to insurance sponsors (employers) and policyholders. It’s advantageous for all parties.
• Reinsuring employee-sponsored voluntary benefits allows hospital leaders to craft benefits packages that improve coverage, lower costs for employees, and offer a return on value.
• FairShare Insurance is a turnkey reinsurance solution that helps hospitals design and manage voluntary benefits. Its unique model passes 100% of underwriting profits that would normally go to the insurance carrier to the hospital or healthcare system. This new profit stream can be repurposed into wellness initiatives, recruitment, or other employee programs.

What Is Reinsurance and How Does It Work?

The easiest way to think of reinsurance is insurance for insurance companies. It’s a financial strategy where insurance providers transfer some of their risk to a reinsurance company to protect themselves against large or unpredictable losses. As a result, insurance carriers can increase their capacity to write new policies and better manage their capital.

FairShare partners with hospital employers and healthcare systems to pass these reinsurance benefits to employees.

“We partner with A-rated insurance carriers to create a seamless, no-cost reinsurance solution tailored to hospital systems,” explained Watkins. “It’s a low lift for HR leaders that enhances employee benefits while generating new financial value.”

FairShare’s team helps hospitals design and manage employee voluntary benefit plans through our network of carriers. 

• The hospital maintains control of benefit offerings, selecting products that align with its workforce’s needs and demographics.
• FairShare handles the rest, including program design, underwriting, compliance, contracting, and claims support.

4 Reinsurance Benefits for Healthcare & Hospital Employers

Hospital employers rely on FairShare to expand their employee benefits. It’s a no-risk, minimal-effort process led by FairShare’s team to transform a traditionally passive expense into a strategic advantage for all parties.

In the context of voluntary benefits, reinsurance means your hospital can:

• Lower premium rates for employees
• Design voluntary benefit plans using a wider carrier selection
• Reduce exposure to underwriting volatility
• Create new revenue streams to reinvest in your workforce

1. Lower Premiums and Enhanced Employee Value

The main perk of reinsurance-backed benefit plans is that employees pay lower premiums on voluntary benefits without compromising coverage. By passing on some risk to reinsurers, insurance carriers don’t need to retain as much capital to cover losses, which helps stabilize premium rates. Lower premiums have the added benefit of improving employee financial security.

2. Wider Carrier Plan Selection

Hospital HR leaders can take advantage of FairShare’s expansive library of A-tier insurance carriers to select affordable, meaningful benefits that align with their workforce needs. With such a competitive healthcare job market, having robust voluntary benefits can be a top recruitment factor for hospitals and healthcare systems.

FairShare’s network offers popular voluntary benefits, including:

• Accident Insurance
• Critical Illness Insurance
• Hospital Indemnity Insurance
• Identity Theft Protection
• Prepaid Legal Services
• Travel Insurance
• Pet Insurance
• Electronic Device Protection

Additional options such as dental, vision, disability, and home warranty coverage are also available, allowing for a comprehensive and attractive benefit package.

3. Workforce Retention Through Strategic Benefits

Employee retention remains a major challenge for healthcare providers. According to the 2025 NSI National Healthcare Retention & RN Staffing Report, nurse turnover costs can have a profound impact on hospital margins. Their recent survey revealed:

• The average cost of turnover for a bedside RN is $61,110.
• Nurse turnover results in average hospital losses between $3.9 million and $5.7 million.
• Each percent change in RN turnover could cost or save the average hospital an additional $289,000 per year.

With mounting pressure to reduce attrition, more hospital leaders are designing enticing benefits programs to improve employee satisfaction and meet their workforce’s diverse needs. Reinsuring voluntary benefits supports these efforts through increased benefits selection and financial benefits.

4. Direct Financial Returns to the Employer

What sets FairShare apart is its financial structure: by reinsuring employee-paid benefits, FairShare returns 100% of underwriting profits directly to the employer, transforming a passive expense into a strategic advantage.

These funds can be reinvested in:

• Recruitment and retention strategies
• Wellness initiatives
• New or expanded employee programs

In other words, FairShare helps hospitals turn benefit spending into a self-reinforcing cycle that strengthens employee engagement and organizational sustainability.

FAQs About Reinsurance Models for Voluntary Benefits

Does reinsurance increase our administrative burden?

Typically not. Reinsurance companies often work with hospital HR teams to create and manage their voluntary benefits programs. Hospital leaders rely on reinsurance companies to support benefit design, compliance management, claims support, and communication. It’s a seamless process, allowing healthcare employers to enhance their offerings with minimal added effort.

Is there any cost or risk to the hospital?

No, reinsuring voluntary benefits is cost-neutral for hospital employers because the employees pay to opt into the program. There are no upfront costs to work with a reinsurance company, and, if working with FairShare, the hospital shares in the financial upside if claims are lower than expected.

Can we still choose our own voluntary benefit offerings?

Yes. Most reinsurance companies partner with a wide range of insurance carriers, allowing hospital employers to select products that match their workforce needs.

Partner With a Reinsurance Solution Provider in Virginia

Innovative solutions like reinsurance offer a path forward for healthcare systems and hospital employees alike as they navigate workforce shortages and rising benefit costs. 

FairShare Insurance empowers hospital HR leaders to build stronger voluntary benefits programs without added costs or complexity. With access to A-rated carriers, a turnkey implementation process, and the return of 100% underwriting profits, FairShare helps healthcare organizations shift from reactive to strategic benefit planning.

Contact VHHA Solutions to see the potential impact FairShare could have on your hospital or healthcare system.